Office rental market expected to ride Thai economic recovery
Foreign tenants will push growth in demand for high-quality property, says Krungsri Research
The office rental market in 2025-26 will improve in line with Thailand's economic expansion of 3-4%, according to Krungsri Research.
Many companies are anticipated to adopt a hybrid workplace model, combining traditional office spaces with flexible, remote work options.
Office space demand is projected to grow 1-2% per year, below the pre-pandemic average of 2.5% per year (2015-19), as economic activity gradually recovers. This will support job expansion in sectors like services, consumer goods, and coworking spaces.
Foreign tenants, who make up 60% of the total renters, are expected to drive demand for high-quality, modern Grade A and A+ offices in Bangkok’s Central Business District (CBD) areas, including Silom, Sathorn, Ploenchit, Wireless Road, and the beginning of Sukhumvit up to Sukhumvit 24, the research said.
Tenants are increasingly relocating to new buildings with improved facilities, such as advanced air-conditioning, elevator systems, and proximity to mass transit.
New “green office” buildings built to global standards or certified in areas like energy conservation, environmental protection, health, or digital connectivity are highly desirable as they align with companies' sustainability goals. Additionally, offices that promote well-being — offering green spaces or fitness areas — are gaining popularity, the research said.
A survey by Jones Lang LaSalle (JLL) Thailand reveals that 96% of office tenants in Thailand aim to make their products and services fully eco-friendly by 2030, compared to just 17% in 2024. ESG (environmental, social, and governance) considerations have become a top priority in office rental decisions.
"Green offices" are becoming a crucial segment, as they attract large corporations and international companies focused on aligning their image with ESG trends. Buildings with global certifications are especially appealing, as they represent environmental commitment, energy efficiency and sustainable design.
According to JLL Thailand, as of 2024, the Bangkok Metropolitan Region has 3.4 million square metres of eco-certified office space, nearly double the 1.7 million square metres in 2019.
Office rental supply is expected to increase by 1.5%-2% annually, with significant additions entering the market in 2023 and 2024. Around 80% of new office space in 2025-26 is anticipated to be Grade A and A+ in green-certified buildings, offering cost savings of 6% in annual revenue compared to standard offices through efficient energy use and waste reduction. These high-grade buildings are part of major mixed-use projects.
The influx of high-quality office spaces is intensifying competition in the rental market, pressuring older buildings (those over 20 years old, which make up over 60% of the total office supply) to modernise to retain value and competitiveness. With more choices, tenants will likely gain bargaining power, potentially securing better terms from building owners.
